Mumbai: The Securities and Exchange Board of India(Sebi) on Friday proposed to modify the block deal framework.
Block deal is execution of large trades through a single transaction without putting either the buyer or seller in a disadvantageous position. For this purpose, stock exchanges are permitted to provide a separate trading window.
The regulator said the minimum order size for execution of trades in the block deal windows would be ₹25 crore. Every trade executed in the block deawindows must result in delivery and should not be squared off or reversed, Sebi said in a consultation paper. It said stock exchanges should disseminate the information on block deals such as the name of the scrip, name of the client, quantity of shares bought and sold and traded price to the public on the same day, after the market hours.